Protection for Personal Guarantees
Protection for Personal Guarantees
We feel this product is of great value , we know in many circumstances clients have issues with PGs this may mitigate the risks .
The products are a Guarantee, that provide up to 100% protection against the Personal Guarantee required by the lender.
This protection is available against Personal Guarantees up to £6.5m (higher than this may be considered on referral basis).
Key Features:
Available for new or existing Personal Guarantees
Multiple Personal Guarantees can be covered
No Limit on the number of Company Directors on a Joint & Several basis
Protection from 80% up to 100%
Project Guarantee covers Residential, Commercial and Industrial sectors
Annual Guarantee covers Residential only
Aggregation limit of £6.5m
The Guarantee Products give you protection against your financial exposure to the Personal Guarantee
The Project Guarantee Protection for Developers can cover a term of up to 3 years
The Annual Guarantee Protection for Property Investors can be renewed every 12 months
These products are backed by a large International Insurance Group
The product requires the lender to sell the asset in the first instance and if a loss is confirmed and the lender wishes to recover this sum via the Personal Guarantee, a Demand can be made on the Guarantee Protection.
The products will cover this loss up to the value of the protection provided, subject to the policy conditions.
The Products can be provided for new or existing loans. If new it may be possible the cost can be incorporated into the loan
If cost overruns, loan arrears or issues occur it is the responsibility of the borrower to manage these with the lender and advise the insurers at the earliest opportunity
It is in the best interest of the borrower and lender to get the asset into a condition that can enable a sale
Once a sale is achieved and a loss incurred by the lender, a Demand can be made by the borrower to the company.